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Bitcoin and Ethereum Post Halving Recovery
Bitcoin and Ethereum recently experienced a period of last-minute volatility leading up to the Bitcoin halving event. However, both cryptocurrencies have managed to bounce back from their tumultuous journey.
As of the latest data, Bitcoin has seen a 1.6% increase in its price over the past day, with the value stabilizing around $66,000 after reclaiming this level for the first time in a week. The Bitcoin halving event on Friday resulted in a reduction of the block reward paid to miners from 6.25 to 3.125 BTC. While this event typically triggers a bullish price trend, the impact is not always immediately evident.
Effects on Transaction Fees
Following the halving, a notable change was observed in Bitcoin transaction fees. There was a brief period over the weekend where the average fee for sending BTC surged to an all-time high of $127. This spike can be attributed to the introduction of Casey Rodarmor’s Runes protocol.
The Runes protocol builds upon the BRC-20 standard, which leverages the Ordinals protocol and was created by the pseudonymous developer domo. Runes aims to streamline the process of generating fungible tokens on the Bitcoin network.
Market analysts from IntotheBlock have noted that Bitcoin is currently positioned on a strong support level, potentially increasing its resilience against downward pressure. Approximately 1.66 million addresses have acquired Bitcoin at an average price of $64,800, forming a key demand zone that could serve as a robust support level in case of further market decline.
Ethereum’s Recovery and Regulatory Approval
On the other hand, Ethereum saw a resurgence above $3,000 on Friday and has maintained this price level over the weekend. At present, the Ethereum price hovers just above $3,200, marking a 1.3% gain in the past 24 hours and remaining close to its value from the previous week.
There is potential good news for both Ethereum and Bitcoin on the regulatory front. Hong Kong has conditionally sanctioned spot ETFs for these assets, with expectations that firms will receive approval to issue shares by the end of the month. Market analysts anticipate that the introduction of ETF trading could alleviate concerns surrounding cryptocurrencies in the region, potentially injecting $25 billion in new liquidity into the market.
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